If you run your own business you know that it is both challenging and rewarding in equal parts. The challenging element tends to come in the form of the declining financial health of your business. This can be a serious setback for any business, small or large, and calls for prompt and decisive action. Today, I want to give you my top tips for improving your company’s financial health. To help some of our clients we have implemented a number of tactics including reducing their expenses, increasing their income by generating revenue and trying to obtain more capital. You can turn your company around and put it back on the path to success by implementing my suggestions!
Cutting costs is one of the best ways to improve the financial health of your business. There are a number of straightforward ways to do this that include:
- Utilising technology whenever possible to hold virtual meetings to save on the expense of petrol or travel.
- Using free services for online payments such as Venmo or Paypal.
- Centralising your business’s documents using free software like Google Docs and Trello.
- Using freelancers is another great option. The talent pool among independent contractors and part-timers is enormous and often underutilised. You can find seasoned, diligent, and knowledgeable freelancers at a fair price. Freelancers are often relatively simple to manage because they are concerned with providing a service rather than moving up the corporate ladder.
- Whether it’s business insurance, a mobile phone contract, or a broadband contract, if a service automatically renews, you’re definitely overpaying. Although it seems like a bit of a faff, I advise that you renegotiate these contracts annually. This way you ensure you’re getting the best deal possible!
- Another great way to save is to go fully remote. This cuts out the expense of having a dedicated office space. As an alternative you could seek out a co-working arrangement, or rent a conference space as and when it is necessary.
The above can all be easily implemented into your business and will significantly cut costs. However, the one thing not yet discussed is redundancies. This must be a last resort. However, if things spiral out of control, this might be the only lever you can pull to improve your business’s financial health.
Generate More Revenue
Making more money is another obvious (albeit more difficult) way to strengthen your business’s financial health. The new revenue resources available to you and your business are limitless, but I have detailed a few below:
- Targeting new markets or clientele groups who might be interested in your goods or services is one thing to consider. This could mean increasing your web visibility or branching out into other sales channels.
- To appeal to a wider group of clients, think about widening your offerings. For instance, if you currently only sell womenswear you could expand to selling children’s or men’s clothes.
- To raise your visibility and draw in more clients, spend more money on your advertising and marketing efforts. To reach your target demographic, think about utilising influencer marketing, email marketing or social media.
Raising capital is another fantastic way to improve the financial health of your business. There are a number of sources of capital available, just ensure that you choose the type that best suits your business needs.
- The first is government grants and loans. At Precision MC we have extensive experience in writing these types of grants so don’t hesitate to get in touch if this is something you are considering!
- Another option is debt financing. This entails taking out loans from financial institutions like banks, credit unions or online lenders. In most circumstances, you will have a set amount of time within which you have to repay the money you borrowed plus interest.
- Last but not least, to access more finances and resources, you can consider forming strategic relationships with other businesses or organisations.
If you need any advice or support on improving the financial health of your business please get in touch!